Asia: Gold, USD, Crude Oil, Stocks & Commodities

Asia: Gold, USD, Crude Oil, Stocks & Commodities


FLASH: Gold Steady, USD Firm, Crude Oil Down, Stocks Down

Notes: MSCI’s ACWI,, a gauge of 47 markets in the world, has risen 16% from its near 2-year low set on 26 December low, even as the earnings outlook stagnated, driven by hopes of a dovish Fed and a compromise between Beijing and Washington on trade.

The index is now trading at 14.6X expected earnings, on par with marks last seen in early October ahead of the financial markets corrections.

US Secretary of State Mike Pompeo said Monday he thought the United States and China were “on the cusp” of a deal to end their trade dispute.

The WS-J reported Sunday Washington could lift most or all of its tariffs on Beijing while Presidents Trump and Xi ready to sign a final trade deal later this month and Summit at Mar a Lago.

In Asia

Gold: Gold prices were steady Tuesday, trading near 5-week lows touched Monday, as a firmer USD and optimism over a likely US-China trade deal dented safe-haven appeal of the precious Yellow metal.

  • Spot gold +0.2% to $1,288.46 oz as of 0552 GMT
  • US gold futures advanced 0.2% to $1,289.80 oz.

People are more comfortable in moving out of safe-haven assets and gold is coming under pressure from that.

Energy: Crude Oil prices fell Tuesday as China cut its Y 2019 economic growth target to 6-6.5%, dimming the outlook for fuel demand, although OPEC-led efforts to cut output offered some support.

  • NYMEX WTI Crude Oil futures were at $56.28 bbl at 0426 GMT, -31c, or 0.6%, from Monday’s settlement in NY.
  • ICE Brent Crude Oil futures were at $65.33 bbl, -34c, or 0.5%.

Crude Oil demand growth has been flagging along with an economic slowdown, especially in Europe and Asia, traders say it is hard to be Bullish in here.

Equities: Asian shares off Tuesday, weighed by US growth concerns and as China cut its economic expansion target on challenges from rising debt and a dispute over trade and technology with the United States.

Beijing lowered the growth target for this year to 6.0 to 6.5%, as expected, from around 6.5% last year and offered more stimulus, including cuts in taxes and social security fees, increases in infrastructure investment and lending to small firms.

MSCI’s broadest index of Asia-Pacific shares sans Japan dropped 0.5 percent. Hong Kong’s Hang Seng was down 0.6% and Japan’s Nikkei lost 0.6%.

While Asian shares were broadly weaker, China’s spending plans gave mainland markets some support with the blue-chip CSI300 index briefly gaining as much as 0.5% from Monday’s 9-month high in early trade. It later gave up these gains and fell 0.1%.

Currencies: .DXY, the measure for USD Vs a group of 6 peer currencies trading close to its 2-week high of 96.816 posted in Monday’s session.

Commodities (quotes): Energy, Metals, and Agriculture Grains

NYMEX Crude Oil »56.37 USD-0.22-0.39%Mar 191:25AM EST
ICE Brent Crude »65.39 USD-0.28-0.43%Mar 197:00PM EST
NYMEX RBOB Gasoline »1.74 USD-0.01-0.30%Mar 191:24AM EST
Dubai Crude Spot »65.53 USD+0.000.00%Dec 021:29AM EST
ICE Gas Oil »618.75 USD-4.00-0.65%Mar 197:00PM EST
NYMEX No2 Heating Oil »2.01 USD-0.01-0.35%Mar 191:25AM EST
NYMEX Nat Gas »2.86 USD-0.00-0.04%Mar 191:25AM EST
ICE NBP Nat Gas »43.14 GBP+0.000.00%Mar 197:00PM EST
Gold Spot »1,288.31USD+1.90+0.15%Dec 027:00PM EST
COMEX 100oz Gold »1,287.00USD+2.20+0.17%Mar 1912:38AM EST
Silver Spot »15.13USD+0.06+0.37%Dec 027:00PM EST
Platinum Spot »839.67USD+4.93+0.59%Dec 027:00PM EST
Palladium Spot »1,526.57USD-6.43-0.42%Dec 027:00PM EST
COMEX Copper »2.93USD+0.02+0.73%Mar 1912:52AM EST
CBOT Corn »366.00USC+1.00+0.27%Mar 1912:28AM EST
CBOT Wheat »446.75USC+0.000.00%Mar 191:52PM EST
KCBT Wheat »434.25USC+0.000.00%Mar 191:00AM EST
MGE Spring Wheat »553.00USC+0.000.00%Mar 191:34AM EST
Euronext Milling Wheat »192.25EUR+0.000.00%Mar 197:00PM EST
CBOT Soybean »904.75USC+1.50+0.17%Mar 198:48PM EST

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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